The research question investigated is “Do managers of Australian firms use upward asset revaluations to reduce debt contracting costs?” Much work in the accounting choice literature is premised on a relation between debt contracts and accounting policies. In particular, prior research using...

Corporate capital structure choices have at least two dimensions that need to be determined: the amount of debt (leverage) and the term of the debt contract (debt maturity). However, little is known about the theoretical interdependence between leverage and debt maturity. Furthermore, leverage...

This dissertation examines issues in banking and the financing of corporate investment. The first chapter investigates the impact of changes in a bank's health on the investment behavior of its current borrowers for a panel of U.S. firms. I find that, after controlling for aggregate credit...

University of Minnesota Ph.D. dissertation. July 2009. Major: Bussiness Administration. Advisor: Pervin Shroff. 1 computer file (PDF); vii, 100 pages, appendices A.

We quantify the effect of financial leverage on stock return volatility in a dynamic general equilibrium economy with debt and equity claims. The effect of financial leverage is studied both at a market and a firm level where the firm is exposed to both idiosyncratic and market risk. In a...

Lally (2007) concludes that regulators must esimate the risk-free rate as the yield-to-maturity on Government debt with a term-to-maturity equal to the regulatory period, to ensure that the present value of expected cash flows equals the investment base. The analytics behind this conclusion...